NACD Releases Guidance on Board-Shareholder Engagement in the New Investor Environment
National Association of Corporate Directors
May. 16, 2018
WASHINGTON, May 16, 2018 (GLOBE NEWSWIRE) -- The National Association of Corporate Directors (NACD), the authority on boardroom practices representing more than 19,000 corporate board members, has released the 2018 edition of its popular Governance Challenges series: Board-Shareholder Engagement in the New Investor Environment. The report, produced in collaboration with NACD’s five strategic-content partners—Heidrick & Struggles, KPMG Board Leadership Center, Marsh & McLennan Companies, Pearl Meyer, and Sidley Austin LLP—helps directors chart an effective course toward sustainable corporate success and long-term value creation.
Direct board engagement with investors continues to grow: according to the 2017–2018 NACD Public Company Governance Survey, for the first time since 2014 a majority of all respondents (51%) had a board representative meet with institutional investors in the prior year, and two-thirds of respondents reported taking action to prepare for a potential activist challenge. Governance Challenges 2018 delves into how increasing expectations about board performance from all segments of the investor community—mainstream asset managers, public pension funds, and activists alike—are broadening the scope of the issues on which directors are engaging with their shareholders. These issues include board diversity, company culture, and climate change.
This new report provides guidance in the following areas:
1. “The Characteristics of Leading-Company Boards Today,” by Heidrick & Struggles 2. “Engaging with Investors in 2018: What Boards Should Know,” by US audit, tax, and advisory firm KPMG LLP 3. “Human Capital Management and Reporting: Key Considerations for Institutional Investors and Directors,” by Mercer, a wholly owned subsidiary of Marsh & McLennan Companies 4. “Communicating Executive Pay in a New Era,” by Pearl Meyer 5. “Strategic Shareholder Engagement: Practical and Legal Considerations,” by Sidley Austin
“NACD has been a consistent advocate for thoughtful and transparent engagement between boards of directors and their major investors,” said NACD president and CEO Peter Gleason. “Our Governance Challenges 2018 report summarizes the latest thinking from our partners and provides practical guidance for boards, as well as for corporate secretaries and general counsel, during proxy season and beyond.”
To download a free copy of the report please click here: www.NACDonline.org/GovernanceChallenges2018.
About NACDThe National Association of Corporate Directors (NACD) empowers more than 19,000 directors to lead with confidence in the boardroom. As the recognized authority on leading boardroom practices, NACD helps boards strengthen investor trust and public confidence by ensuring that today’s directors are well prepared for tomorrow’s challenges. World-class boards join NACD to elevate performance, gain foresight, and instill confidence. Fostering collaboration among directors, investors, and corporate governance stakeholders, NACD has been setting the standard for responsible board leadership for 40 years. To learn more about NACD, visit www.NACDonline.org.